LIC OF INDIA Vs. K PURUSHOTHAMA

JUDGEMENT

(1.) Aggrieved by the order of the Karnataka State Consumer Disputes Redressal Commission, Bangalore dated 6.7.2005, the Life Insurance Corporation of India has filed this revision petition. Facts of the case, in brief, are as follows:

(2.) Mr. K. Purushothama is the respondent in this case. Complainant is the husband of the deceased Smt. Vishalakshi who was the holder of the LIC Policy for a sum of Rs. 1.00 lakh. This policy was issued on 12.2.1998. Smt Vishalakshi died on 27.9.1998 due to Malaria. Nominee of the husband of the deceased, the complainant submitted a claim form to the LIC authorities claiming the sum assured. The Divisional Office of LIC sent a reply dated 21.7.1999 repudiating the claim on the ground that the deceased Vishalakshi had provided incorrect and false information regarding the insurance policy held by her husband. The District Forum upheld the contention of the LIC and dismissed the complaint.

(3.) Dissatisfied with the order of the District Forum, the complainant filed an appeal before the State Commission. After hearing the parties, the State Commission allowed the appeal and directed the LIC to settle the claim of the complainant with other benefits in accordance with law. Submissions of the learned Counsel for the Revision Petitioner (LIC):